The Kingdom of the Netherlands was formed in 1815. In 1830 Belgium seceded and formed a separate kingdom. The Netherlands remained neutral in World War I, but suffered invasion and occupation by Germany in World War II. A modern, industrialized nation, the Netherlands is also a large exporter of agricultural products. The country was a founding member of NATO and the EEC (now the EU), and participated in the introduction of the euro in 1999.

23 January 1579 (the northern provinces of the Low Countries conclude the Union of Utrecht breaking with Spain; it was not until 1648 that Spain recognized their independence)

National holiday:

Queen's Day (Birthday of Queen-Mother JULIANA in 1909 and accession to the throne of her oldest daughter BEATRIX in 1980), 30 April

Constitution:

adopted 1815; amended many times, last time 2002

Legal system:

civil law system incorporating French penal theory; constitution does not permit judicial review of acts of the States General; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:

18 years of age; universal

Executive branch:

chief of state: Queen BEATRIX (since 30 April 1980); Heir Apparent WILLEM-ALEXANDER (born 27 April 1967), son of the monarch
head of government: Prime Minister Jan Peter BALKENENDE (since 22 July 2002) and Deputy Prime Ministers Gerrit ZALM (since 27 May 2003) and Laurens Jan BRINKHORST (since 31 March 2005)
cabinet: Council of Ministers appointed by the monarch
elections: none; the monarchy is hereditary; following Second Chamber elections, the leader of the majority party or leader of a majority coalition is usually appointed prime minister by the monarch; vice prime ministers appointed by the monarch
note: there is also a Council of State composed of the monarch, heir apparent, and councilors that provides consultations to the cabinet on legislative and administrative policy

Legislative branch:

bicameral States General or Staten Generaal consists of the First Chamber or Eerste Kamer (75 seats; members indirectly elected by the country's 12 provincial councils for four-year terms) and the Second Chamber or Tweede Kamer (150 seats; members directly elected by popular vote to serve four-year terms)
elections: First Chamber - last held 25 May 2003 (next to be held May 2007); Second Chamber - last held 22 January 2003 (next to be held May 2007)
election results: First Chamber - percent of vote by party - NA%; seats by party - CDA 23, PvdA 19, VVD 15, Green Party 5, Socialist Party 4, D66 3, other 6; Second Chamber - percent of vote by party - CDA 28.6%, PvdA 27.3%, VVD 12.9%, Socialist Party 6.3%, List Pim Fortuyn 5.7%, Green Party 5.1%, D66 4.1%; seats by party - CDA 44, PvdA 42, VVD 28, Socialist Party 9, List Pim Fortuyn 8, Green Party 8, D66 6, other 5

Judicial branch:

Supreme Court or Hoge Raad (justices are nominated for life by the monarch)

three equal horizontal bands of red (top), white, and blue; similar to the flag of Luxembourg, which uses a lighter blue and is longer; one of the oldest flags in constant use, originating with WILLIAM I, Prince of Orange, in the latter half of the 16th century

The Netherlands has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted for stable industrial relations, moderate unemployment and inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 4% of the labor force but provides large surpluses for the food-processing industry and for exports. The Netherlands, along with 11 of its EU partners, began circulating the euro currency on 1 January 2002. The country continues to be one of the leading European nations for attracting foreign direct investment. Economic growth slowed considerably in 2001-04, as part of the global economic slowdown, but for the four years before that, annual growth averaged nearly 4%, well above the EU average.

euro (EUR)
note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions within the member countries

general assessment: highly developed and well maintained
domestic: extensive fixed-line fiber-optic network; cellular telephone system is one of the largest in Europe with five major network operators utilizing the third generation of the Global System for Mobile Communications (GSM)
international: country code - 31; 9 submarine cables; satellite earth stations - 3 Intelsat (1 Indian Ocean and 2 Atlantic Ocean), 1 Eutelsat, and 1 Inmarsat (Atlantic and Indian Ocean regions) (2004)

major European producer of ecstasy, illicit amphetamines, and other synthetic drugs; important gateway for cocaine, heroin, and hashish entering Europe; major source of US-bound ecstasy; large financial sector vulnerable to money laundering